CANADIAN QUALIFIER PLUS 4X ® ADVANCED REAL ESTATE FINANCE CALCULATOR with CASH FLOW and BUILT-IN CANADIAN INTEREST MODE Model 3423
Introducing the CANADIAN QUALIFIER PLUS® 4X Mortgage Calculator The Canadian Qualifier Plus 4x was designed specifically for mortgage lenders, residential real estate agents and brokers for quick mortgage calculations in the office or out in the field. It’s the most complete and intuitive calculator of its kind.
TABLE OF CONTENTS GETTING STARTED..........................................................................1 KEY DEFINITIONS .........................................................................1 Basic Operation Keys ..................................................................1 Mortgage/Time-Value-of-Money Keys..........................................2 Qualifying Keys ............................................................................5 Cash Flow Keys .....................................
Total Payment (Including Heating Expense and Property Tax Entered as Percentage)..........................................................28 Total Payment (Including Heating Expense and Property Tax Entered as Dollar Amount) .....................................................28 Finding Mortgage Amount (Including Canadian Mortgage Insurance) ...............................................................................29 Finding Monthly Mortgage (P&I) Payment (Including Canadian Mortgage Insurance).......
CASH FLOW EXAMPLES .........................................................51 Calculating IRR, NPV, and NFV for Annual Cash Flows ...........53 Calculating IRR, NPV, and NFV for Monthly Cash Flows .........54 Recalling and Replacing Cash Flows ........................................55 Recalling and Replacing Cash Flow Frequencies .....................55 EXAMPLES — U.S. MODE .............................................................56 Finding the Monthly Mortgage Payment (Based on U.S. Interest Rate) ..
GETTING STARTED KEY DEFINITIONS Basic Operation Keys O Turns all power off. The memory and most financial registers are cleared. o If calculator is off, turns power on. If calculator is on, a single press clears the last entry while a second press in succession clears non-permanent entries. Note: Clears Loan Amount, Payment, Price, Down Payment, Income, Debt, Expense, and Canadian Mortgage Insurance. +–x ÷= Arithmetic operation keys. 0–9 Keys used for entering numbers.
s– Change Sign (+/-) — Changes the sign of the displayed value from positive to negative or vice versa. sx Clear All — Clears all entered values and returns any stored values to their default settings. Use this only with caution, as it will reset ratios, payments per year, decimal places, etc. back to their defaults (see the Appendix for a list of these settings). Note: Clear All will not affect any changes made to Preference Settings.
p P&I and Total Payment — Multi-function payment key. Enters or solves for the Periodic Principal and Interest (P&I) payment. In Canadian Mode, a second press of the p key calculates the Total Payment (includes monthly property tax, insurance, heating expense, and other applicable housing expenses, such as condo fees). If entered, Canadian Mortgage insurance is included in both P&I and Total Payment. In U.S.
sd Loan-to-Value (LTV) — Calculates the Loan-toValue percent when a Down Payment and Sales Price, Mortgage Amount/Down Payment, or Mortgage Amount/Sales Price are entered. Also calculates the above dollar values if an LTV percent and one of the above values are entered (e.g., entered Sales Price and LTV percent will calculate Down Payment and Mortgage Amount). sb Periodic — Used to specify a mortgage component (Term or Interest) or Amortization/Remaining Balance entry as periodic rather than yearly.
s) Month Offset — Used to set the first month of payment if other than January (e.g., Month 3). s: Odd-Days Interest (ODI) — Calculates the pre-paid interest, or simple interest accumulated (based on a 360-day year) during the days before the first mortgage payment is made, using the interest rate stored in the Interest register. (U.S. Mode only.) sT Bi-Weekly (Bi-Wkly) — Converts a regular monthly loan to a Bi-Weekly loan, where the buyer may realize significant interest savings.
(Cont’d) 1) Stores Canadian GDS:TDS ratios for mortgage qualifying. Entered ratios are separated by the Colon : key. For example, income and debt ratios of 32% and 40%, respectively, are entered and permanently stored as follows: 3 2 : 4 0 q. Default income and debt ratios for this key are 32% and 40%, respectively. You may change these ratios, if desired.
3) Calculates the annual income required and allowable monthly debt for a desired mortgage amount or sales price based on the stored income and debt qualifying ratios and the entered: • Term • Interest • Price (down payment) or mortgage amount 4) Also finds buyer's actual income and debt ratios given both buyer and property data. By default, the first press of q displays the stored qualifying ratios and the 2nd press calculates the buyer's actual ratios. Note on U.S.
t Property Tax — Used for calculating PITI and Total (PITH) payment, and Qualifying. Stores estimated annual property tax in either percent or dollar amount. If entered as an annual dollar amount, a press of t converts to the monthly tax amount, and pressing t again converts to the annual percent rate. If entered as a percent, pressing t converts to the annual dollar amount, and pressing t once more shows the monthly tax. Note: Entering a number equal to or less than ten is assumed to be an annual percent.
(Cont’d) Press 1 2 3 4 Display or Calculation IRR%* Net Present Value (NPV)** Net Future Value (NFV) Desired Interest Rate (entered prior to calculating)*** *IRR: The rate of return at which the discounted future cash flows equal the initial cash outlay (C-0). An IRR greater than the desired rate of return is financially attractive (the higher, the better). **NPV: Another tool to analyze cash flow scenarios. A positive NPV indicates that an investment is attractive (again, the higher, the better).
CALCULATOR SETTINGS Decimal Place Selection With the s key, you have the option of selecting the number of decimal places you’d like to display. The values are rounded using conventional 5/4 rounding. You can do this prior to finding an answer or afterwards. Press s followed by the number of decimal places you wish to display: s s s s s s s 5 4 3 2 1 0 • 0.00000 0.0000 0.000 0.00 0.0 0. floating point To return to the standard two decimal place setting, press s 2.
Canadian / U.S. Mode Your calculator is factory-set to Canadian (Interest) Mode. If you need to calculate loan problems using U.S. interest, you must change the calculator to U.S. (Interest) Mode. To easily switch your calculator from Canadian Mode to U.S. Mode, press the s and then the + key. Pressing s + also allows you to toggle between Canadian Interest and U.S. Interest calculations. In other words, you may switch from Canadian Interest to U.S. Interest, or vice versa, by repeating the keystrokes s +.
Preference Settings Your calculator has a Preference Mode, which allows you to program the calculator to various settings. For example, it allows you to store certain values permanently, display certain values, or show values in a specific order. To access the Preference Mode, press s, then =, then keep pressing = to toggle through the settings listed below. Press the + sign to advance through the sub-settings.
(Cont’d) After s, Keep Pressing =: Display Description (Press + to Advance within each category): 4 Mortgage Insurance (MI)—U.S. Only - Clr-Clr M Ins — Clears Mortgage Insurance (% and $) upon o o. (Default) - Clr-OFF M Ins — Clears Mortgage Insurance (% and $) at O. - HOLd Pct. M Ins — Holds only percent (%) Mortgage Insurance entry at O. - HOLd ALL M Ins — Holds (% or $) Mortgage Insurance entry at O. 5 Amortization/Single Entries - AMRT Ent-Ent — Displays Amortization for specified year only (e.g.
MEMORY Accumulative Memory Whenever the µ key is pressed, the displayed value will be added to cumulative Memory. This value will remain in Memory until cleared or when the calculator is turned off.
Memory Storage Keys (M0-M5) In addition to the standard cumulative Memory (as described on previous page), your calculator has six independent Storage Registers — [M0] through [M5] — that can be used to permanently store single, non-cumulative values. These values will be held when your calculator is turned off, and will only clear when a “Clear All” is performed (via s x). You can replace a value in one of these Memory Registers by storing a new value in place of the stored value.
Additional Memory Storage Keys (M10-M19) In addition to M0-M5 (as described previously), your calculator has ten additional independent Storage Registers — [M10] through [M19] — that can also be used to permanently store single, noncumulative values. To access these storage registers, use the following keystrokes: s ® • [#], with [#] being digits 0 – 9. These Storage Registers operate identically to M0-M5. Examples: Store 250 into M10, recall the value, then clear M10.
BASIC ARITHMETIC EXAMPLES Arithmetic This calculator uses standard chaining logic, which simply means that you enter your first value, the operator (+, –, x, ÷), the second value and then the equals sign (=). A. B. C. D. 3 3 3 3 + – x ÷ 2 2 2 2 = = = = 5.00 1.00 6.00 1.50 Percent Calculations The percent % key can be used for finding a given percent of a number or for working add-on, discount or division percentage calculations. A. B. C. D.
Figuring Straight Percent Commission The commission for the listing office is 3%. If the property sells for $157,900, what is the listing office’s commission? STEPS KEYSTROKES Clear calculator Enter sales price Multiply by commission % oo 157900 x3%= DISPLAY 0.00 157,900. 4,737.00 — DO NOT CLEAR CALCULATOR — What if the listing agent works on a 50/50 split with his or her broker? What is the listing agent’s share of this commission? STEPS KEYSTROKES Multiply by 50% x50%= DISPLAY 2,368.
Delta Percent - Rate of Appreciation A home originally purchased for $150,000 sold a year later for $185,000. What is the rate of appreciation? KEYSTROKES DISPLAY 150)s% 185)= 150,000.00 23.33 USING THE FEET AND METERS CONVERSIONS Using the w and W keys, you can quickly convert Meters to Feet, Feet to Meters, Square Meters to Square Feet, and Square Feet to Square Meters. Convert 5 meters to feet. STEPS KEYSTROKES Clear calculator Enter 5 Meters Convert to Feet oo 5 w DISPLAY 0.00 5. FEET 16.
USING THE DATE FUNCTION Using the : key, you can quickly solve common real estate date problems: escrow or closing dates, listing expiration dates, and the number of days prepaid interest, etc. You enter a date as follows: Numerical Month :, Numerical Day :, and Numerical Year (MM : DD : YY).
EXAMPLES — CANADIAN MODE MORTGAGE / TIME-VALUE-OF-MONEY (TVM) 1. The financial functions — Loan Amount, Payment, Interest, Term — work just like you would say them. For example, if you wanted to borrow $100,000 for 25 years at 8% interest, just enter those three known variables and press the key for the unknown fourth variable: p. 2. When calculating future value problems, enter the present value into the l key. 3. Financial values may be entered in any order you want. 4.
(Cont’d) IMPORTANT NOTE: All of the following examples can also be performed while the calculator is in U.S. Mode. See Canadian/U.S. Modes on page 11. Just be sure to change the term from 25 to 30 years, where applicable, and of course, the answers will change due to U.S. interest. Additional U.S. examples are provided starting on page 56. Finding the Monthly Mortgage (P&I) Payment Find the monthly payment on a 25-year fixed-rate mortgage of $165,000 at 7.5% annual interest.
Paying Off a Mortgage Early (Making Larger Payments) How long does it take to pay off a 25-year fixed-rate mortgage of $150,000 at 7.25% interest if you add an extra $200 to the mortgage payment each month? STEPS KEYSTROKES Clear calculator oo Enter Mortgage Amount 150)l Enter Annual Interest Rate 7 • 2 5 ˆ Enter Term in years 25T Find monthly P&I Payment p Add add’tl Payment amount + 2 0 0 = Enter as new P&I Payment p Find reduced Mortgage Term T DISPLAY 0.00 150,000.00 7.25 25.00 “run” 1,073.88 1,273.
Non-Monthly Mortgages Most mortgages are paid off monthly. However, if you have a nonmonthly mortgage, you must change the number of payments per year using a two-key sequence: s ÷. For example, here's how to set your calculator to four payments per year. STEPS KEYSTROKES Clear calculator Enter # of payments/year oo 4s÷ DISPLAY 0.00 4.00 To recall the currently stored number of payments: STEPS KEYSTROKES Clear calculator oo Recall # of payments/year ® ÷ DISPLAY 0.00 4.
Bi-Weekly Mortgages Your calculator includes a built-in Bi-Weekly mortgage function (s T), which allows you to convert established, fully amortized monthly mortgages into Bi-Weeklies (in which one-half the monthly payment is made every two weeks). Because you make two extra half-payments per year (e.g., 26 Bi-Weekly payments is like making 13 payments/year), these kinds of mortgages can amount to large interest savings and a substantial reduction in the time it takes to pay them off.
Sales Price / Down Payment One of the unique features of this calculator is its ability to work with not only Mortgage Amount, but with Sales Price and Down Payment. You can enter two values to find the third (e.g., enter Price and Down Payment to find Mortgage Amount). You may also enter the down payment in both percent or dollar format. For example, to enter 20%, enter 20 and press the d key (you do not have to label it as a percent). Or enter $20,000 (e.g., 2 0 ) d).
Finding Loan-to-Value (LTV) Based on Down Payment and Sales Price Find the Loan-to-Value if a buyer is putting $15,000 down on a $197,000 home. Then find the mortgage amount. STEPS KEYSTROKES Clear calculator Enter sales Price Enter Down Payment $ Find Down Payment % Find LTV Find Mortgage Amount oo 197)P 15)d d d l DISPLAY 0.00 197,000.00 15,000.00 7.61 92.39 182,000.00 Setting Property Tax Percent Rate Enter an annual property tax rate of 1.5%.
Total Payment (Including Heating Expense and Property Tax – Entered as Percentage) Find the Total (PITH) payment on a 25-year, 7.63% mortgage if the home’s selling price is $178,000 and the down payment is 5%. The annual property tax is estimated at 1.3% and the monthly heating cost is estimated at $150. STEPS KEYSTROKES Clear calculator Enter Term in years Enter annual Interest Enter sales Price Enter Down Payment Set annual Tax rate Find annual property Taxes Add mo.
Finding Mortgage Amount (Including Canadian Mortgage Insurance) Find the Mortgage Amount (including Canadian Mortgage Insurance) on a 25-year mortgage at 7.8% interest if you are considering a mortgage with a monthly P&I Payment of $1,500. Canadian Mortgage Insurance of 2.75% will be added to the mortgage amount.
Finding Monthly Mortgage (P&I) Payment (Including Canadian Mortgage Insurance) Find the monthly P&I Payment (including Canadian Mortgage Insurance) on a 25-year mortgage, 300,000 mortgage at 7.8% interest. Canadian Mortgage Insurance of $5,250 will be added to the mortgage amount.
(Cont’d) 2. You can also find Remaining Balance using the s a key by specifying a year or range of years, period or range of periods. For example, to find the remaining balance after the 10th year, press 1 0 s a; to find the remaining balance after the 10th period, press 1 0 s b s a. 3. Entered ranges are inclusive, so that a range of 1 to 5 would include both year 1 and year 5. 4.
Total Principal and Interest for a 25-Year Mortgage How much total interest will you pay on a $200,000 mortgage at 7.5% interest over 25 years? What is the total principal and interest paid? STEPS KEYSTROKES Clear calculator Enter Mortgage Amount Enter annual Interest rate Enter Term in years Find monthly P&I Payment Find total # of payments Find total interest paid Find total principal paid Find total principal/interest oo 200)l 7•5ˆ 25T p a a a a DISPLAY 0.00 200,000.00 7.50 25.00 “run” 1,463.
Amortization List for Individual Year(s) — Using “Next” Feature How much total interest and principal will you pay on a 25-year, $90,000 mortgage at 8% interest during the first year? The second year? Third year, etc.? First, find monthly payment to “set-up” this mortgage. The calculator will automatically advance to the next year upon subsequent presses of a.
Amortization List for Individual Year(s) — Using Month Offset The first payment of a mortgage begins in May. How much total interest and principal will you pay on a 25-year, $90,000 mortgage at 8% interest during the first year? The second year? Third year, etc.? (First find the monthly payment to “set-up” this mortgage.
Amortization List for Individual Payment(s) For a $175,000 mortgage at 6.85% interest for 25 years, find out how much interest and how much principal you’ll pay in the first and second payments. Note: Use the Per Function (s b) keys to specify payments. STEPS KEYSTROKES Clear calculator oo Enter Mortgage Amount 175)l Enter Interest 6•85ˆ Enter Term 25T Find monthly P&I Payment p Enter Payment #1 1sba Find interest in Payment #1 a Find principal in Payment #1 a Find P&I in Payment #1 a Find Rem.
Amortization List for a Range of Payments or Years For a $225,000, 25-year mortgage at 7.4% interest, find out how much interest and principal you'll pay in payments 1-9, and then for years 1-10.
Future Value Given any four components to a problem that includes a future value, you can calculate the fifth. Appreciation / Future Value You purchased a home for $210,000 and want to know what it will be worth in 3 years, figuring an inflation or appreciation rate of 6%. (Set periods to one per year.
Trust Deeds and Discounted Notes Your calculator easily handles trust deed purchase price and yield problems. Two things to remember are: 1) when entering or solving for “yield” or “rate of return,” use the ˆ key. 2) when entering or solving for “purchase price” or “present value,” use the l key.
Finding the Yield on a Discounted Note An individual wants to sell you a note under the following terms: 60 months remaining in the term, a face amount when due of $7,500, 10% interest-only payments of $62.50 (incoming). He says he will sell this note to you for $6,500 if you buy today. If you buy it, what will be the yield on your investment? STEPS KEYSTROKES Clear calculator Enter future value of note when due Enter purchase price Enter Remaining Term/Yrs.
BUYER PRE-QUALIFYING The Qualifying keys on your calculator let you instantly pre-qualify prospective buyers. Mortgage lending pros will find these keys useful for doing instant mortgage pre-qualifications on the phone or in front of clients. Real estate agents/brokers can quickly pre-qualify clients so they can show them homes in their affordable price range. The calculator gives you three types of qualifying answers: 1) Mortgage Amount Available given buyer’s income and debt.
(Cont’d) • the last press will display the allowable monthly debt. Note: You can set your Qualifying Ratios to display first or last via the Preference Settings. See page 12. 5.
QUALIFYING EXAMPLES Most of the examples in this section will be based on the default GDS:TDS Income and Debt Ratios of 32% and 40%, respectively, which are stored in the q key. Recalling GDS / TDS Qualifying Ratios Recall stored 32%-40% and 35%-42% ratios: STEPS KEYSTROKES Clear calculator Recall Qualifying Ratios 1 Recall Qualifying Ratios 2 oo ®q ®Q DISPLAY 0.00 32.00-40.00 35.00-42.
Finding Qualifying Mortgage Amount and Sales Price (Simple Example Excluding Property Tax) Given an interest rate of 7.5%, a term of 25 years, and the stored 32%:40% qualifying ratios, what size mortgage and what sales price can a buyer pre-qualify for, if he or she makes $45,000 annually and has $350 in long-term, monthly debt? The buyer plans to put $10,000 down. Also, what is the monthly (P&I) payment? (Based on no Tax.
Qualifying Mortgage Amount and Sales Price (Including Down Payment, Property Tax and Monthly Heating/Condo Fees) The same buyers as in the previous example (who make $45,000 annually and have $200 in long-term monthly debt) wish to buy a lower-priced condo, but can only afford $7,500 down. If you include estimated annual property tax of 1.
Qualifying Mortgage Amount and Sales Price (Including Canadian Mortgage Insurance) Buyers who make $45,000 annually and have $200 in long-term monthly debt can put 15% down on a home. How much will they qualify for? What is the monthly payment (including the Canadian Mortgage Insurance of 1.75%)? (Using previously stored 7.5% interest, 25-year term, 1.5% tax rate, $150 monthly heating expense, and qualifying ratios of 32%:40%).
“Restricted” Qualifying Buyers who make $45,000 annually and have $600 in long-term monthly debt wish to buy a home offered at $165,000. They will put 15% down. Will they qualify? For what maximum mortgage amount can they qualify? (Use previously stored 7.5% interest and 25-year term, tax rate of 1.5%, monthly heating expense of $100, and qualifying ratios of 32%:40%.) Note: If you aren’t continuing from the previous problem, you’ll need to re-enter interest, term, and property tax.
“Unrestricted” Qualifying The amount calculated in the previous example is the “restricted” mortgage they may qualify for, based on current income and debt.
Qualifying Comparison (Comparing 2 Different Mortgages or Two Qualifying Ratios at Once) Given a buyer's annual income of $45,000, $150 in long-term monthly debt, a 10% down payment, monthly heating expense of $75, an interest rate of 7.25% and term of 25 years, what mortgage amounts can they qualify for based on both 32%:40% and 35%:42% ratios? Also, find the corresponding total monthly payment for each. Estimate property taxes at 1.25%.
Finding Income Required and Allowable Monthly Debt Using the 32%:40% ratios, how much income would a buyer need to finance a $180,000 home, if they put 35% down? What is the maximum allowable debt? What is the dollar down payment and mortgage amount? What is the monthly payment? Use 7.05% interest for 25 years. Estimate property tax rate at 1.5% and $80 for monthly heating expense. STEPS KEYSTROKES Clear calculator Enter annual Interest rate Enter Term in years Enter Tax rate Enter mo.
Solving for Actual Qualifying Ratios A buyer who makes $60,000 per year and has $350 in long-term monthly debt wants to borrow $100,000 to purchase a home. He has $25,000 down payment and annual property tax is estimated at 1.4%. Monthly housing expenses are estimated at $150. Use 7.5% interest for 25 years.
CASH FLOW EXAMPLES Your calculator has easy-to-use cash flow keys for performing real estate investment, or cash flow analysis. Cash Flow Entry The c key can store up to 20 sequential, semi-permanent cash flows, including an Initial Investment, along with their corresponding Frequencies. The Cash Flow numbering begins at zero (C-Ø is displayed) and ends at 19 (C-19 is displayed), for a total of 20 individual Cash Flows.
IRR, NPV, and NFV Functions The R key is multifunctional, and consecutive presses calculate: • the annual Internal Rate of Return (IRR%); • the Net Present Value (NPV) of the entered cash flows, based on an entered desired Rate of Return, and the stored Payments per Year (default = 12); • the Net Future Value; and • (re-display of) the entered Rate of Return. Note: If you wish to skip directly to the NPV calculation, press s R.
Calculating IRR, NPV, and NFV for Annual Cash Flows A real estate investor wishes to purchase/finance a piece of property for $225,000. He’d like a return of 9% and expects to sell it after five years for $275,000. He expects the annual cash flows below. Find the IRR, NPV and NFV, and determine whether this investment is desirable. Note: since payments are expected to be received annually, you will need to set your Payments per Year to 1.
Calculating IRR, NPV, and NFV for Monthly Cash Flows A real estate investor wishes to purchase/finance a piece of property for $225,000. She’d like a return of 10% and expects to sell it after five years for $275,000. She expects the monthly cash flows below. Find the IRR, NPV and NFV, and determine whether this investment is desirable. Note: since payments are expected to be received monthly, you will need to set your Payments per Year to 12.
(Cont’d) Recalling and Replacing Cash Flows STEPS KEYSTROKES 1) Recall all cash flows and frequencies: Initial cash flow ®c 1st cash flow c 1st cash flow frequency c 2nd cash flow c 2nd cash flow frequency c 3rd cash flow c 3rd cash flow frequency c 4th cash flow c 4th cash flow frequency c DISPLAY C-0 -225,000.00 C-1 1,000.00 F-1 12.00 C-2 1,100.00 F-2 12.00 C-3 1,200.00 F-3 24.00 C-4 275,000.00 F-4 1.
EXAMPLES — U.S. MODE Finding the Monthly Mortgage Payment (Based on U.S. Interest Rate) IMPORTANT NOTE: Your calculator must be in U.S. Mode to complete the following examples. If it isn’t, press s +. Also, when returning to Canadian examples, be sure to return to Canadian Mode by pressing s + again. Find the monthly payment on a 30-year mortgage of $215,000 at 7.5% annual U.S. interest.
Property Taxes, Property / Hazard Insurance and Monthly Housing Expense Your calculator has keys that store estimated local annual Property Tax, Property Insurance and Mortgage Insurance (if applicable), and monthly estimated housing expense. This allows you to calculate the PITI (Principal, Interest, Tax and Insurance) payment and Total Payment (PITI plus Monthly Expenses), in addition to the regular P&I payment.
PITI Payment (Tax and Insurance Entered as Percentage) Find the PITI payment on a 30-year, 8.4% loan if the home’s selling price is $125,000 and the down payment is 5%. Annual property taxes are estimated at 1.3%, annual property insurance at 0.25% and annual mortgage insurance at 0.45%.
Calculating Tax and Insurance Percent or Dollar Amount If loan variables are entered in addition to tax and insurance percent rates or dollar values, the respective Tax/Insurance dollar values or percent rates can be viewed by simply pressing the applicable keys a second time. For example, enter an annual property tax rate of 1.5%, a property insurance rate of 0.25% and a mortgage insurance rate of 0.75%. Then enter a sales price of $250,000, 25% down, a term of 30 years and an interest rate of 8%.
Finding the Interest Rate Find the interest rate if the mortgage is $98,500, term is 30 years and payment is $1,150 a month. STEPS KEYSTROKES Clear calculator oo Enter Loan Amount 98500l Enter Term in years 30T Enter monthly P&I Payment 1 1 5 0 p Find annual Interest ˆ Find periodic Interest ˆ DISPLAY 0.00 98,500.00 30.00 1,150.00 “run” 13.78 1.
Finding Sales Price and Payment Based on Loan Amount and Down Payment Find a home’s sales price if you've been approved for a $200,000, 30-year, 7.5% mortgage and you plan to put 20% down. Also find your monthly payment. STEPS KEYSTROKES Clear calculator Enter Loan Amount Enter Term in years Enter annual Interest rate Enter Down Payment % Find sales Price Find monthly P&I Payment oo 200)l 30T 7•5ˆ 20d P p DISPLAY 0.00 200,000.00 30.00 7.50 20.00 250,000.00 “run” 1,398.
Amortization List for Individual Year(s) — Using “Next” Feature How much total interest and principal will you pay on a 30-year, $90,000 loan at 8% interest during the first year? The second year? Third year, etc.? First, find monthly payment to “set-up” this loan. The calculator will automatically advance to the next year upon subsequent presses of a.
APR, Total Finance Charges (Including Mortgage Insurance) You are financing a mortgage of $275,000 for 30 years at a nominal or quoted rate of 6.25% interest. The cost of getting the loan is quoted as 1.5 points plus $550 in fees. What is the APR (including Mortgage Insurance), total finance charges, principal amount financed, total cost, P&I payment, monthly Mortgage Insurance, and PIMI payment? Mortgage Insurance is estimated at 0.65% of the loan amount.
Bi-Weekly Mortgages Your calculator includes a built-in Bi-Weekly mortgage function (s T), which allows you to convert established, fully amortized monthly mortgages into Bi-Weeklies (in which one-half the monthly payment is made every two weeks). Because you make two extra half-payments per year (since 26 Bi-Weekly payments is like making 13 payments/year), these kinds of loans can amount to large interest savings and a substantial reduction in the time it takes to pay them off.
Qualifying Loan Amount and Sales Price (Complete Example Including Down Payment, Tax / Insurance, Monthly Association Dues) Buyers who make $75,000 annually and have $500 in long-term monthly debt wish to buy a home but can only afford $5,000 down. If you include estimated annual property taxes and insurance of 1.5% and 0.25%, respectively, a mortgage insurance rate of 0.
“Restricted” Qualifying Buyers who make $68,000 annually and have $750 in long-term monthly debt wish to buy a home offered at $175,000. They can only afford $5,000 for the down payment. For what maximum loan amount can they qualify? (Use previously stored 7.5% interest, 30year term, Tax/Ins./MI rates of 1.5%, .25% and 0.6%, respectively, and qualifying ratios of 28%:36%. Re-enter $50 association dues and $5,000 down.
(Cont’d) *The Maximum Qualifying Loan Amount displayed is the “restricted” loan amount that the buyer may qualify for. This loan amount is based on whichever of the two ratios, income or debt, limits the buyer the most. If the buyer’s maximum qualifying loan amount is restricted by their debt, then the unrestricted qualifying loan amount will also be displayed. The unrestricted qualifying loan amount is based purely on the buyer’s income and is not restricted by their debt.
Finding Income Required and Allowable Monthly Debt Using the 28%:36% ratios, how much income would a buyer need to finance a $250,000 home, if they put 20% down? What is the maximum allowable debt? What is the dollar down payment and loan amount? What is the monthly payment? Use 7.5% interest for 30 years. Estimate property Tax/Insurance rates of 1.5% and .25%, respectively. Clear mortgage insurance rate to zero, as they are putting 20% down.
Qualifying Comparison (Comparing Two Different Loans or Two Qualifying Ratios at Once) Given a buyer's annual income of $45,000, $500 in long-term monthly debt, estimated monthly homeowner’s association dues of $50, an interest rate of 7.25% and term of 30 years, what loan amounts can they qualify for based on both 28%:36% and 29%:41% ratios? Also, find the corresponding total monthly payment for each. Estimate property tax/insurance rates of 1.25% and .3%, respectively, and a mortgage insurance rate of .
APPENDIX Default Settings Performing a total Reset (see below) will return the calculator to the following default settings: • • • • • • • • • • • Canadian Interest Mode 12 Periods per Year = Reset to 12 Upon O Property Tax/Ins. = Values Cleared Upon O Mortgage Ins. = Values Cleared Upon o o Amortization Range = Specified Year (Ent-Ent) Qualifying Ratios Displayed 1st Qual 1 Ratios = 32%-40% (Canadian) Qual 2 Ratios = 35%-42% (Canadian) Month Offset to January (1) Tax Bracket = 28% (U.S.
Error Codes With an incorrect entry or answer beyond the range of the calculator, the display will show one of the following error messages. To clear an error, simply press any key. OFLO DIV Error TVM Error ENT Error PPY Error QL Error — — — — — — Number Too Large to Display Attempted to Divide by Zero Time-Value-of-Money Error Invalid Entry Payments Per Year Error Qualifying Error Auto Shut-Off Your calculator is designed to shut itself off after about 8-12 minutes of non-use.
Repair and Return Warranty, Repair and Return Information! Return Guidelines: 1. Please read the Warranty in this User's Guide to determine if your Calculated Industries product remains under warranty before calling or returning any device for evaluation or repairs. 2. If your calculator won't turn on, check the batteries as outlined in the User's Guide. 3. If you need more assistance, please go to our website listed below. 4.
Warranty Warranty Repair Service – U.S.A. Calculated Industries (“CI”) warrants this product against defects in materials and workmanship for a period of one (1) year from the date of original consumer purchase in the U.S. If a defect exists during the warranty period, CI at its option will either repair (using new or remanufactured parts) or replace (with a new or remanufactured calculator) the product at no charge.
Disclaimer CI MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCT’S QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. AS A RESULT, THIS PRODUCT, INCLUDING BUT NOT LIMITED TO, KEYSTROKE PROCEDURES, MATHEMATICAL ACCURACY AND PREPROGRAMMED MATERIAL, IS SOLD “AS IS,” AND YOU THE PURCHASER ASSUME THE ENTIRE RISK AS TO ITS QUALITY AND PERFORMANCE.
INDEX Accumulative Memory µ, 14 Amortization and Remaining Balance, 30 Amortization List for a Range of Payments or Years, 36 Amortization List for Individual Payment(s), 35 Amortization List for Individual Year(s)—Using “Next” Feature, 33 Amortization List for Individual Year(s)—Using Month Offset, 34 Appendix, 70 Appreciation/Future Value, 37 APR Example (U.S.
Payment – Including Heating Expense, 27 Payment – Including Heating Expense and Property Tax, 28 Payment – PITI (U.S.), 58 Percent Change, 17 Percentage Calculations, 17 PITH Payment, 27, 28 PITI Payment (U.S.), 58 Preference Settings, 12 Property Taxes, Property/Hazard Insurance and Monthly Housing Expense, (U.S.), 57 Qualifying Examples (CANADA), 42 Qualifying Examples (U.S.
4840 Hytech Drive Carson City, NV 89706 U.S.A. 1-800-854-8075 or 1-775-885-4900 Fax: 1-775-885-4949 E-mail: info@calculated.com www.calculated.
